Determinants of Football Player Transfer Value

Bachelor of Science Lina Trushnikova

Master's thesis

Abstract:

The popularity of football is only increasing during last 3 decades, which also boosts the financial activity of professional football associations. The money flow in professional teams is raising, and transfer market and transfers itself play the key role not only in club’s revenue, but also in expenses. The transfer market has been actively developing in the recent decades that has a significant stimulating effect on the footballers` transfer prices growth rate. Transfer value of player mostly is not equal to market value of player what raises the main question of the research: what influence on the transfer value of players in European premier leagues? The main aim of the research is to find the main regressors of transfer value and determine the direction of influence. The assumption that not every player decides to move to another team during transfer window, therefore, the sample of players who has made a transfer does not represent the general sample, is considered. The methodology includes the comparison of Ordinary Least Squares method and Two-Step Heckman model for proving the shift between estimates. In the future, it will be possible to expand the study by increasing the set of variables, using proxy variables for non-numeric parameters, which cannot be included currently in the research, or expanding the scope of observations to obtain a more accurate illustration of the transfer market.

Keywords

Football, Economics of sport, Transfer value, Heckman procedure, Sample selection bias, OLS, Transfer market

Language used: English

Date on which the thesis was submitted / produced: 31. 3. 2022

Thesis defence

• Supervisor: Ing. Lenka Rumánková, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / European Agrarian Diplomacy